Is Avago Technologies Ltd (NASDAQ:AVGO) a good investment right now? We check hedge fund and billionaire investor sentiment before delving into hours of research. Hedge funds spend millions of dollars on Ivy League graduates, expert networks, and get tips from industry insiders. They fail miserably sometimes but historically their consensus stock picks outperformed the market after adjusting for known risk factors.
Is Avago Technologies Ltd (NASDAQ:AVGO) a bargain? The smart money is selling. The number of long hedge fund bets fell by 6 lately. AVGO was in 66 hedge funds’ portfolios at the end of September. There were 72 hedge funds in our database with AVGO holdings at the end of the previous quarter. The level and the change in hedge fund popularity aren’t the only variables you need to analyze to decipher hedge funds’ perspectives. A stock may witness a boost in popularity but it may still be less popular than similarly priced stocks. That’s why at the end of this article we will examine companies such as Prudential Financial Inc (NYSE:PRU), General Mills, Inc. (NYSE:GIS), and ACE Limited (NYSE:ACE) to gather more data points.
Keeping this in mind, we’re going to view the new action surrounding Avago Technologies Ltd (NASDAQ:AVGO).
How have hedgies been trading Avago Technologies Ltd (NASDAQ:AVGO)?
At the end of the third quarter, a total of 66 of the hedge funds tracked by Insider Monkey held long positions in this stock, a change of -8% from the previous quarter. With the smart money’s capital changing hands, there exists an “upper tier” of notable hedge fund managers who were increasing their holdings substantially (or already accumulated large positions).
According to Insider Monkey’s hedge fund database, Viking Global, managed by Andreas Halvorsen, holds the number one position in Avago Technologies Ltd (NASDAQ:AVGO). Viking Global has a $867.5 million position in the stock, comprising 3.3% of its 13F portfolio. The second largest stake is held by Coatue Management, led by Philippe Laffont, holding a $542.3 million position; the fund has 6.1% of its 13F portfolio invested in the stock. Other members of the smart money with similar optimism comprise Daniel S. Och’s OZ Management, Dan Loeb’s Third Point and Ken Griffin’s Citadel Investment Group.